Qualified Mortgages - Conventional Loans
To qualify for a conventional mortgage (or qualified mortgage) you’ll require a minimum credit score of 620 or higher. The better your credit score, the better your interest rate. Ultimately your final interest rate will be determined based on the 3 major factors; 1. The loan to value (i.e the loan amount as a percentage of the sale price) 2. Your credit score (and history) and 3. Property type and occupancy. Your interest rate will vary if you’re buying a primary home vs. an investment property. Will also vary between a single family home and a condominium or a Four-plex. Higher credit scores generally qualify for lower down payments and better rates. All Conventional loans (Qualified Mortgages) require tax returns to verify income and calculate the debt-to-income (DTI) which is capped at 43%, but ask your mortgage broker to review your specific home loan purchase or refinance question(s).
Non-QM
Non-Qualified Mortgage
These loan programs are mortgage loans that do not meet the criteria for Qualified Mortgages (QM). Non Qm mortgages come in many forms and are designed to help borrowers that aren’t able to verify income using traditional tax returns, or other tax forms. A Non Qm loan could work for you if you’re self-employed as an independent business owner, entrepreneur, contractor, hospitality worker, retiree, actors, artists to name a few. Non Qm loan types are divided into several categories including: No income primary residence loans, Bank statement Loans (for Self-employed borrowers- link), Profit & Loss loans (for Self-employed borrowers – Link), Foreign National Loans (for borrowers with no status, credit or income in USA- link), DSCR loans (Requires No personal income, used for investment property types – link) Fix n Flip Loans (for borrowers purchasing an investment property that requires renovations or rehab – link ) and Hard money loans (Basically collateral based lending). Usually no credit or income are needed to qualify for this type of lending.
Royal Capital Group offers Non-QM loans that can accommodate borrowers who have some or all of the following characteristics:
Different types of income verification including W-2s, 1099’s, 12 or 24 month bank statements, no income on DSCR or primary home purchase program. We can even use your stocks, and mutual funds balances to count as income.
| Credit Score | 620 or higher |
| Debt-to-Income Ratio (DTI) | Up to 50% |
| Loan-to-Value Ratio (LTV) | Up to 90% |
Bank Statement Loans
Use bank statements to verify income instead of tax returns
DSCR Loans
No tax returns, just rental income to get approved!
Foreign National Loans
Dont have a visa, dont live, do not earn income or have credit in USA, this loan type is for you.
No Income Primary Residence Loans
Only applicable to primary residence homes
Profit & Loss
P&L statement works. No tax returns, bank statements are needed.
Self Employed
Either bank statements, P&L or DSCR